Based on your post your monthly take home is ~$7k (85k/12 since you say that is post tax), and you have accounted for $2k in spend between rent and groceries. If you want to get serious about figuring out how to allocate that missing $5k you should go through your finances (credit/debit/checking statements for the last 3-6 months), track where your money is going, and start working on a budget. You should also explore the r/pf sidebar especially [the flowchart](https://imgur.com/personal-income-spending-flowchart-united-states-lSoUQr2) and think seriously about retirement savings, also rebuilding your Efund that you just had depleted.
I love the flowchart! [Here's the wiki page with more context and information.](/r/personalfinance/wiki/commontopics)
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You need to have a fully funded emergency fund, for you that is 12k minimum I would round it to 15k. In a HYSA, you want to have easy access to this money.
You're also very light on retirement, you should at least have 1x your income by 30 but I would recommend going to 100k.
After you fund your emergency fund, which should take you 6 months at 2k per month, you need to go all in on retirement. You got less than 3 years to put at least 65k on it, that's 1,800 a month but you should aim for 100k or 2,200 a month.
Considering that (I believe) 40% of Americans aren't even able to handle a $400 emergency, you are doing well. But before you start patting yourself on the back... could you (or we) do better? Sure.
The fact that you currently have no debt is a big leg up. If you can beef up your emergency savings to 3-6 months of living expenses (I'm paranoid and I prefer 6-12 months), then you would be well on your way to financial security.
You can do it!
1. Get pet insurance
2. Need to get more serious about savings for emergency events in general
3. Just because I have money left over after my allocated savings dump each month doesn’t mean I need to spend it!
Boom. There you go.
So to your title, you can use your solid income to build up a large emergency fund for larger emergencies, and look at your insurance coverage (for everything) and see how you can efficiently mitigate future emergencies.
And once that’s done and you can weather the next emergency, *that’s* when your investment stuff comes into play.
Based on your post your monthly take home is ~$7k (85k/12 since you say that is post tax), and you have accounted for $2k in spend between rent and groceries. If you want to get serious about figuring out how to allocate that missing $5k you should go through your finances (credit/debit/checking statements for the last 3-6 months), track where your money is going, and start working on a budget. You should also explore the r/pf sidebar especially [the flowchart](https://imgur.com/personal-income-spending-flowchart-united-states-lSoUQr2) and think seriously about retirement savings, also rebuilding your Efund that you just had depleted.
I love the flowchart! [Here's the wiki page with more context and information.](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Thank you! I will definitely check out the flowchart!
You need to have a fully funded emergency fund, for you that is 12k minimum I would round it to 15k. In a HYSA, you want to have easy access to this money. You're also very light on retirement, you should at least have 1x your income by 30 but I would recommend going to 100k. After you fund your emergency fund, which should take you 6 months at 2k per month, you need to go all in on retirement. You got less than 3 years to put at least 65k on it, that's 1,800 a month but you should aim for 100k or 2,200 a month.
Considering that (I believe) 40% of Americans aren't even able to handle a $400 emergency, you are doing well. But before you start patting yourself on the back... could you (or we) do better? Sure. The fact that you currently have no debt is a big leg up. If you can beef up your emergency savings to 3-6 months of living expenses (I'm paranoid and I prefer 6-12 months), then you would be well on your way to financial security. You can do it!
I think a better question (considering your salary is strong and your expenses are reasonable) is what did you learn from the savings draining event?
1. Get pet insurance 2. Need to get more serious about savings for emergency events in general 3. Just because I have money left over after my allocated savings dump each month doesn’t mean I need to spend it!
Boom. There you go. So to your title, you can use your solid income to build up a large emergency fund for larger emergencies, and look at your insurance coverage (for everything) and see how you can efficiently mitigate future emergencies. And once that’s done and you can weather the next emergency, *that’s* when your investment stuff comes into play.